Huntsman(US:HUN)2023-11-01 19:19Financial Performance - Revenues for Q3 2023 were $1,506 million, a decrease of 25% compared to $2,011 million in Q3 2022[139] - Gross profit for Q3 2023 was $231 million, down 34% from $349 million in Q3 2022[139] - Operating income for Q3 2023 fell to $27 million, an 80% decline from $138 million in Q3 2022[139] - Net income for Q3 2023 was $15 million, an 87% decrease compared to $115 million in Q3 2022[139] - Income from continuing operations before income taxes was $42 million, down 71% from $146 million in Q3 2022[139] - Revenues for Q3 2023 were $1.506 billion, a decrease of 25% compared to $1.275 billion in Q3 2022[141] - Operating income fell to $28 million in Q3 2023, an 80% decline from $137 million in Q3 2022[141] - Net income for Q3 2023 was $16 million, an 86% decrease compared to $114 million in Q3 2022[141] - Adjusted EBITDA for Q3 2023 was significantly impacted, reflecting a decline of 50% compared to the previous year[140] - Adjusted EBITDA for Q3 2023 was $137 million, down 49% from $270 million in Q3 2022[141] - Total reportable segments' adjusted EBITDA for the three months ended September 30, 2023, was $136 million, a decrease of 50% from $271 million in 2022[159] - Adjusted EBITDA for total reportable segments decreased by $129 million, or 42%, to $177 million for the three months ended September 30, 2023, compared to $306 million in the prior year[161] Cash Flow and Investments - The company reported a net cash provided by operating activities from continuing operations of $85 million, an 86% decrease from $595 million in the prior year[140] - Cash provided by operating activities was $87 million, an 85% decrease from $597 million in Q3 2022[142] - Free cash flow from continuing operations for the nine months ended September 30, 2023, was negative $62 million, compared to positive $409 million in the same period of 2022[144] - Net cash provided by operating activities decreased to $85 million for the nine months ended September 30, 2023, down from $595 million in the same period of 2022, primarily due to decreased operating income[180] - Net cash provided by investing activities was $395 million for the nine months ended September 30, 2023, compared to $(176) million in 2022, with $544 million received from the sale of the Textile Effects Business[181] Capital Expenditures - Capital expenditures from continuing operations were $147 million, a 21% decrease compared to $186 million in Q3 2022[142] - Capital expenditures from continuing operations for the nine months ended September 30, 2023, were $147 million, down from $186 million in the same period of 2022[144] - The company expects to spend approximately $230 million on capital expenditures in 2023 and between $200 million and $220 million in 2024[188] Tax and Income - The effective tax rate for the nine months ended September 30, 2023, was 42%, compared to 21% in the same period of 2022[144] - The adjusted effective tax rate for the nine months ended September 30, 2023, was 33%, compared to 22% in the same period of 2022[144] - The income tax expense for the nine months ended September 30, 2023 decreased to $66 million from $155 million in the 2022 period, primarily due to a decrease in income from continuing operations[170] Shareholder Returns and Cost Savings - The company plans to repurchase approximately $50 million of shares of common stock in the fourth quarter of 2023[188] - The company anticipates achieving annualized cost savings of approximately $140 million in 2023 and an additional $100 million by the end of the year due to cost realignment plans[188] Assets and Working Capital - Total current assets decreased by $751 million, or 24%, from December 31, 2022, to September 30, 2023, primarily due to a decrease in cash and cash equivalents and inventories[184] - Working capital decreased by $321 million, or 22%, as of September 30, 2023, driven by reductions in cash, accounts payable, and accrued liabilities[185] Other Income and Expenses - Equity in income of investment in unconsolidated affiliates increased by 43% to $30 million in Q3 2023 from $21 million in Q3 2022[139] - Equity in income of investment in unconsolidated affiliates increased to $70 million for the nine months ended September 30, 2023, up from $55 million in the prior year, mainly due to improved income at a joint venture in China[170] - The company reported a loss from discontinued operations of $2 million in Q3 2023, compared to income of $10 million in Q3 2022[143] - Restructuring, impairment, and plant closing costs were $7 million for the nine months ended September 30, 2023, significantly lower than $36 million in the same period of 2022[170] Sales Performance - Revenues for the three months ended September 30, 2023 decreased by $505 million, or 25%, compared to the same period in 2022, primarily due to lower sales volumes and average selling prices across all segments[160] - Gross profit for the three months ended September 30, 2023 decreased by $118 million, or 34%, compared to the 2022 period, driven by lower gross profits in all segments[160] - For the nine months ended September 30, 2023, revenues decreased by $1,665 million, or 26%, compared to the same period in 2022, attributed to lower sales volumes and average selling prices in all segments[170] - Average selling prices for Polyurethanes decreased by 8% for the nine months ended September 30, 2023, while sales volumes decreased by 12%[173] - Segment adjusted EBITDA for Polyurethanes decreased by 41% to $81 million for the three months ended September 30, 2023, from $138 million in 2022[159] - Segment adjusted EBITDA for Polyurethanes decreased by 60% to $235 million for the nine months ended September 30, 2023, down from $591 million in 2022[169] Corporate Financial Position - As of September 30, 2023, the company had $1,784 million in combined cash and unused borrowing capacity, consisting of $496 million in cash and $1,188 million available under the 2022 Revolving Credit Facility[186] - The company has approximately $480 million of cash and cash equivalents held by foreign subsidiaries, which will primarily be used to fund local operations[190]